Target Canada Owes Millions to Major Video Distributors

[uther]

Found a list of the companies Target Canada is in debt too and to my surprise quite a bit is owed to the media based entertainment distributors:

WARNER BROS. ENTERTAINMENT GROUP $4,253,184
20TH CENTURY FOX HOME ENTERTAINMENT $3,678,689
BUENA VISTA HOME ENT $3,486,772
UNIVERSAL STUDIOS CANADA INC $2,195,950
SONY PICTURES HOME ENTRTN CANADA $846,513
ENTERTAINMENT ONE LP $295,399

Might of missed a few like whoever distributes HBO media. These may not be the final numbers.
Comes at a bad time for Sony, Universal and not sure if E1 can easily absorbed it.

Source:
http://www.alvarezandmarsal.com/site...%202015)_0.pdf

[Terrorfirmer]

Originally Posted by uther

Found a list of the companies Target Canada is in debt too and to my surprise quite a bit is owed to the media based entertainment distributors:

WARNER BROS. ENTERTAINMENT GROUP $4,253,184
20TH CENTURY FOX HOME ENTERTAINMENT $3,678,689
BUENA VISTA HOME ENT $3,486,772
UNIVERSAL STUDIOS CANADA INC $2,195,950
SONY PICTURES HOME ENTRTN CANADA $846,513
ENTERTAINMENT ONE LP $295,399

Might of missed a few like whoever distributes HBO media. These may not be the final numbers.
Comes at a bad time for Sony, Universal and not sure if E1 can easily absorbed it.

Source:
http://www.alvarezandmarsal.com/site...%202015)_0.pdf

guess thats what happens when 9 times out of 10 your prices are higher than ANY of your competetors.

[uther]

Originally Posted by Terrorfirmer

guess thats what happens when 9 times out of 10 your prices are higher than ANY of your competetors.

Thanks for the completely irrelevant post.

[Buzz201]

Originally Posted by uther

Found a list of the companies Target Canada is in debt too and to my surprise quite a bit is owed to the media based entertainment distributors:

WARNER BROS. ENTERTAINMENT GROUP $4,253,184
20TH CENTURY FOX HOME ENTERTAINMENT $3,678,689
BUENA VISTA HOME ENT $3,486,772
UNIVERSAL STUDIOS CANADA INC $2,195,950
SONY PICTURES HOME ENTRTN CANADA $846,513
ENTERTAINMENT ONE LP $295,399

Might of missed a few like whoever distributes HBO media. These may not be the final numbers.
Comes at a bad time for Sony, Universal and not sure if E1 can easily absorbed it.

Source:
http://www.alvarezandmarsal.com/site...%202015)_0.pdf

Target Canada are fairly big right? Because it's quite plausible that they could be gone by the end of the month. Most companies wait a while before paying suppliers, it's not uncommon, so I wouldn't necessarily panic...

Also, the listing is for creditors, i.e. short term debts...

[uther]

Originally Posted by Buzz201

Target Canada are fairly big right? Because it's quite plausible that they could be gone by the end of the month. Most companies wait a while before paying suppliers, it's not uncommon, so I wouldn't necessarily panic...

Also, the listing is for creditors, i.e. short term debts...

Nicollet Enterprise is owed 3 billion, you call that a short term debt? The pdf states it is a Consolidated List of Creditors, where are you getting short term from?

I am not a bankruptcy expert but the entire point of it is to avoid as much as possible not paying the creditors. From personal experience I know those owed the most get the loin's share, those owed amounts in the middle get little and those on the lower end get nothing.

Now let's panic...

[Rhylliam]

HBO titles are distributed by Warner Bros. This kind of amount owing isn't surprising at all, and some stock may even be allowed to be returned back to the distributors to cancel out some of that debt.

[RBBrittain]

Originally Posted by uther

Nicollet Enterprise is owed 3 billion

Which shows you just how much the U.S. parent was propping up Target Canada. Nicollet Enterprise has the same address (1000 Nicollet Mall, Minneapolis) as Target Corporation (the parent company), which is itself owed over C$100 million. That's far more than what Target Canada owes its trade creditors like the studios.

[Buzz201]

Originally Posted by uther

Nicollet Enterprise is owed 3 billion, you call that a short term debt? The pdf states it is a Consolidated List of Creditors, where are you getting short term from?

I am not a bankruptcy expert but the entire point of it is to avoid as much as possible not paying the creditors. From personal experience I know those owed the most get the loin's share, those owed amounts in the middle get little and those on the lower end get nothing.

Now let's panic...

I didn't read the list in any detail, I skimmed it, based on the OP's highlights.

In accounting "creditors" would generally refer to short term liabilities, based on the note at the top about them being drawn from the recent books, I assumed they would have carried terminology across. I was also not aware they were in bankruptcy when I made the comment* , in that context, they probably would all be referred to as "creditors". From the looks of it, they are very much screwed.

*(I'm not Canadian, I assumed somebody had assembled the list from their published financial statements - In the UK it's a legal requirement that the financial statements are kept on record and made available to the public by companies house, I was guessing Canada has a similar set up and somebody had decided to make a deal out of those)

[uther]

Originally Posted by RBBrittain

Which shows you just how much the U.S. parent was propping up Target Canada. Nicollet Enterprise has the same address (1000 Nicollet Mall, Minneapolis) as Target Corporation (the parent company), which is itself owed over C$100 million. That's far more than what Target Canada owes its trade creditors like the studios.

Interesting, that makes 6 times Target shows up in the list.

[Terrorfirmer]

Originally Posted by uther

Thanks for the completely irrelevant post.

No problem.

[RBBrittain]

Originally Posted by Buzz201

I didn't read the list in any detail, I skimmed it, based on the OP's highlights.

In accounting "creditors" would generally refer to short term liabilities, based on the note at the top about them being drawn from the recent books, I assumed they would have carried terminology across. I was also not aware they were in bankruptcy when I made the comment* , in that context, they probably would all be referred to as "creditors". From the looks of it, they are very much screwed.

*(I'm not Canadian, I assumed somebody had assembled the list from their published financial statements - In the UK it's a legal requirement that the financial statements are kept on record and made available to the public by companies house, I was guessing Canada has a similar set up and somebody had decided to make a deal out of those)

Unless the UK does it differently than the rest of the world, I'm not aware of any solvent corporation being required to list its creditors by name on its financial statements; U.S. statements & SEC filings would only list expenses & liabilities by category, not creditor name. OTOH, almost anyone who files for bankruptcy anywhere must list all creditors by name & address so they can receive proper notice of the filing.

That being said, it's safe to assume these are trade accounts, i.e., what it owes the studios for recently purchased inventory; that could easily run into the millions of dollars. Of course, that's nothing compared to the billions it owes Target U.S.

[malcy30]

Originally Posted by RBBrittain

Unless the UK does it differently than the rest of the world, I'm not aware of any solvent corporation being required to list its creditors by name on its financial statements; U.S. statements & SEC filings would only list expenses & liabilities by category, not creditor name. OTOH, almost anyone who files for bankruptcy anywhere must list all creditors by name & address so they can receive proper notice of the filing.

That being said, it's safe to assume these are trade accounts, i.e., what it owes the studios for recently purchased inventory; that could easily run into the millions of dollars. Of course, that's nothing compared to the billions it owes Target U.S.

As you say with solvent companies creditors are listing in categories depending upon the time period in which they are payable usually split short term (< 1 year say) and longer. Very large creditors may be listed with the amount if they materially impact the companies results, but in retail creditors arising because they have provided stock which has not been paid for are usually not listed.

On insolvency all creditors have to declare what they are owed by a specified date set by the insolvency practitioner. This so they know the total amount owed and can divide up any money accordingly.

With trade creditors these are usually unsecured so in the pot with other creditors, although as mentioned above they may have retention of title. So if the company goes bust the studio gets any unsold stock back. This applied in the UK administration of HMV a year or so back where Sony had retention of title on console games and possibly other media. When the administrator was clearing stock at bargain prices Sony titles were marked as excluded as had to be returned to Sony if no one bought at the regular price.